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Fulbright Economics Teaching Program 2006-2007 Trade: Institutions and impact Ari Kokko 1 Lecture 1 Ari Kokko TRADE: INSTITUTIONS AND IMPACT Why and how do countries trade? Outline and schedule Ari Kokko Why do countries trade? • Get goods and services that cannot be produced at home • To accumulate gold • Get cheaper goods and services • Efficiency and growth • Different theories and policies for different motives Fulbright Economics Teaching Program 2006-2007 Trade: Institutions and impact Ari Kokko 2 Lecture 1 Ari Kokko Gains from trade: the simple view • Clear gains if countries are strong in different areas: absolute advantages • Less obvious - but undisputed - gains even if one country is “better” in all areas: comparative advantages Ari Kokko Absolute advantages Motorbikes Rice Vietnam 20 10 Laos 10 20 Labor requirements for one unit of output Fulbright Economics Teaching Program 2006-2007 Trade: Institutions and impact Ari Kokko 3 Lecture 1 Ari Kokko Comparative advantages Motorbikes Rice Vietnam 20 10 Laos 100 20 Labor requirements for one unit of output Ari Kokko Comparative advantages  Trade is profitable as soon as relative prices differ between countries  Why are there differences in relative prices?  Classical and neoclassical theory: – technology differences (Adam Smith 1776 / David Ricardo 1815) – differences in factor endowments (Heckscher- Ohlin 1930) Fulbright Economics Teaching Program 2006-2007 Trade: Institutions and impact Ari Kokko 4 Lecture 1 Ari Kokko Policy conclusions: neoclassical theory  Free trade and specialization is optimal  pattern of comparative advantages is given by nature  all industries are equally “desirable”  International framework should support development of free trade  unilateral liberalization more difficult because of protectionist interest groups and lack of coordination Ari Kokko Institutions: Bretton-Woods solutions  Four cornerstones of international economy after WWII to support growth of free trade – International Bank for Reconstruction and Development – International Monetary Fund – International Trade Organization – Price stabilization fund Fulbright Economics Teaching Program 2006-2007 Trade: Institutions and impact Ari Kokko 5 Lecture 1 Ari Kokko But why is world trade not free? • Protectionism leads to higher prices, lower consumption, and lower welfare both at home and abroad . • …so why is there still a lot of protectionism? Ari Kokko Unequal gains from trade at the micro level • Interest groups matter: trade benefits some groups but hurts others • trade raises the rewards of a country’s abundant factor of production and reduces the rewards of the scarce factor (Stolper-Samuelson theorem) • the groups that lose may oppose free trade • the transition to free trade may have troublesome social consequences Fulbright Economics Teaching Program 2006-2007 Trade: Institutions and impact Ari Kokko 6 Lecture 1 Ari Kokko Shortcomings in neoclassical trade theory  What if the assumptions of the neoclassical theory aren’t true? – all industries are not equally valuable: better to produce micro chips than potato chips – comparative advantages can be created: economies of scale and agglomeration effects Ari Kokko Modern trade theory  Economies of scale – Bigger is better – Hard to manage in free trade environment if American and Japanese companies will always be stronger  Need to manipulate comparative advantages – Strategic trade policy? Fulbright Economics Teaching Program 2006-2007 Trade: Institutions and impact Ari Kokko 7 Lecture 1 Ari Kokko Why strategic trade policy may be useful in theory • The location of industries with scale economies / agglomeration effects may be determined by history Taste and Smell Taste and Smell Bởi: OpenStaxCollege Taste, also called gustation, and smell, also called olfaction, are the most interconnected senses in that both involve molecules of the stimulus entering the body and bonding to receptors Smell lets an animal sense the presence of food or other animals—whether potential mates, predators, or prey—or other chemicals in the environment that can impact their survival Similarly, the sense of taste allows animals to discriminate between types of foods While the value of a sense of smell is obvious, what is the value of a sense of taste? Different tasting foods have different attributes, both helpful and harmful For example, sweet-tasting substances tend to be highly caloric, which could be necessary for survival in lean times Bitterness is associated with toxicity, and sourness is associated with spoiled food Salty foods are valuable in maintaining homeostasis by helping the body retain water and by providing ions necessary for cells to function Tastes and Odors Both taste and odor stimuli are molecules taken in from the environment The primary tastes detected by humans are sweet, sour, bitter, salty and umami The first four tastes need little explanation The identification of umami as a fundamental taste occurred fairly recently—it was identified in 1908 by Japanese scientist Kikunae Ikeda while he worked with seaweed broth, but it was not widely accepted as a taste that could be physiologically distinguished until many years later The taste of umami, also known as savoriness, is attributable to the taste of the amino acid L-glutamate In fact, monosodium glutamate, or MSG, is often used in cooking to enhance the savory taste of certain foods What is the adaptive value of being able to distinguish umami? Savory substances tend to be high in protein All odors that we perceive are molecules in the air we breathe If a substance does not release molecules into the air from its surface, it has no smell And if a human or other animal does not have a receptor that recognizes a specific molecule, then that molecule has no smell Humans have about 350 olfactory receptor subtypes that work in various combinations to allow us to sense about 10,000 different odors Compare that to mice, for example, which have about 1,300 olfactory receptor types, and therefore probably sense more odors Both odors and tastes involve molecules that stimulate specific chemoreceptors Although humans commonly distinguish taste as one sense 1/9 Taste and Smell and smell as another, they work together to create the perception of flavor A person’s perception of flavor is reduced if he or she has congested nasal passages Reception and Transduction Odorants (odor molecules) enter the nose and dissolve in the olfactory epithelium, the mucosa at the back of the nasal cavity (as illustrated in [link]) The olfactory epithelium is a collection of specialized olfactory receptors in the back of the nasal cavity that spans an area about cm2 in humans Recall that sensory cells are neurons An olfactory receptor, which is a dendrite of a specialized neuron, responds when it binds certain molecules inhaled from the environment by sending impulses directly to the olfactory bulb of the brain Humans have about 12 million olfactory receptors, distributed among hundreds of different receptor types that respond to different odors Twelve million seems like a large number of receptors, but compare that to other animals: rabbits have about 100 million, most dogs have about billion, and bloodhounds—dogs selectively bred for their sense of smell—have about billion The overall size of the olfactory epithelium also differs between species, with that of bloodhounds, for example, being many times larger than that of humans Olfactory neurons are bipolar neurons (neurons with two processes from the cell body) Each neuron has a single dendrite buried in the olfactory epithelium, and extending from this dendrite are to 20 receptor-laden, hair-like cilia that trap odorant molecules The sensory receptors on the cilia are proteins, and it is the variations in their amino acid chains that make the receptors sensitive to different odorants Each olfactory sensory neuron has only one type of receptor on its cilia, and the receptors are specialized to detect specific odorants, so the bipolar neurons themselves are specialized When an odorant binds with a receptor that recognizes it, the sensory neuron associated with the receptor is stimulated Olfactory stimulation is the only sensory information that directly reaches the cerebral cortex, whereas other sensations are relayed through the thalamus 2/9 Taste and Smell In the human olfactory system, (a) bipolar olfactory neurons extend from (b) the olfactory epithelium, where olfactory receptors are located, to the olfactory bulb (credit: modification of work by Patrick J Lynch, medical illustrator; C Carl Jaffe, MD, cardiologist) Evolution Connection PheromonesA pheromone is a chemical ... Common Idioms and Expressions ThaoThy’s Common Idioms and Expressions  Here is a list of the most common idioms that you could expect to encounter. 1. ace: make an "A" on a test, homework assignment, project, etc. "Somebody said you aced the test, Dave. That's great!" 2. all right (1): expression of reluctant agreement. A: "Come to the party with me. Please!" B: "Oh, all right. I don't want to, but I will." 3. all right (2): fair; not particularly good. A: "How's your chemistry class?" B: "It's all right, I guess, but it's not the best class I've ever had." 4. all right (3): unharmed; in satisfactory condition. A: "You don't look normal. Are you all right?" B: "Yes, but I have a headache." 5. and then some: and much more besides. A: "I'd guess your new computer cost about $2,000. " B: "It cost that much and then some because I also bought extra RAM and VRAM." 6. antsy: restless; impatient and tired of waiting. "I hope Katy calls soon. Just sitting around and waiting is making me antsy." 7. as easy as pie: very easy. "I thought you said this was a difficult problem. It isn't. In fact, it's as easy as pie." 8. at the eleventh hour: at the last minute; almost too late. "Yes, I got the work done in time. I finished it at the eleventh hour, but I wasn't late. 9. bad-mouth: say unkind, unflattering, embarrassing (and probably untrue) things about someone. A: "I don't believe what Bob said. Why is he bad-mouthing me?" B: "He's probably jealous of your success." 10. be a piece of cake: be very easy. A: "Bob said the test was difficult, but I thought it was a piece of cake."" 11. be all ears: be eager to hear what someone has to say. A: "I just got an e-mail message from our old friend Sally." B: "Tell me what she said. I'm all ears!" 12. be broke: be without money. "No, I can't lend you ten dollars. I'm completely broke until payday." 13. be fed up with (with someone or something): be out of patience (with someone or something); be very tired of someone or something. "Bill, you're too careless with your work. I'm fed up with apologizing for your mistakes!" 14. be in and out: be at and away from a place during a particular time. "Could we postpone our meeting until tomorrow? I expect to be in and out of the office most of the day today." 15. be on the go: be very busy (going from one thing or project to another). “I'm really tired. I've been on the go all week long." 16. be on the road: be traveling. "You won't be able to contact me tomorrow because I'll be on the road." 17. be over: be finished; end. “I can't see you until around 4 o'clock. My meetings won't be over until then." 18. be up and running: (for a technological process) be operational; be ready to use . Sources: the Internet 1 Common Idioms and Expressions ThaoThy’s “Dave's ESL Cafe on the Web has been up and running since December 1995." 19. be used to (+Ving/noun): be accustomed to; not uncomfortable with. “It won't be hard to get up at 5:00 AM. I'm used to getting up early." 20. beat: exhausted; very tired (adj.). “This has been a long day. I'm beat!" 21. beat around the bush: evade an issue; avoid giving a direct answer. “Quit beating around the bush! If you don't want to go with me, just tell me!" 22. beat one's brains out: try very hard to understand or do something. "Can you help me with this problem? I've been beating my brains out with it, but I just can't solve it." 23. Contents Introduction 1 Course Materials 2 Prerequisites 3 Course Outline 4 Setup 7 Microsoft Certified Professional Program 8 Facilities 10 Introduction Information in this document, including URL and other Internet Web site references, is subject to change without notice. Unless otherwise noted, the example companies, organizations, products, domain names, e-mail addresses, logos, people, places, and events depicted herein are fictitious, and no association with any real company, organization, product, domain name, e-mail address, logo, person, places or events is intended or should be inferred. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.  2001 Microsoft Corporation. All rights reserved. Microsoft, MS-DOS, Windows, Windows NT, Active Directory, Authenticode, Biztalk, Intellisense, Jscript, MSDN, PowerPoint, Visual Basic, Visual C++, Visual C#, Visual Studio, Win32, and Windows Media are either registered trademarks or trademarks of Microsoft Corporation in the U.S.A. and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. Introduction iii Instructor Notes The Introduction module provides students with an overview of the course content, materials, and logistics for course 2524A, Developing XML Web Services Using Microsoft Visual C# .NET Beta 2. Course Materials and Preparation Required Materials To teach this course, you need the following materials: ! Delivery Guide ! Trainer Materials compact disc Preparation Tasks To prepare for this course, you must: ! Complete the Course Preparation Checklist that is included with the trainer course materials. ! Review all contents on the Trainer Materials compact disc. ! Review the Trainer Preparation Presentation on the Trainer Materials compact disc. ! Read the Trainer Delivery Guide for the course. ! Read the Instructor Notes that precede each module. The Instructor Notes contain preparation suggestions for each module. ! Read any recommended documents that are mentioned in the Instructor Notes section for each module. ! Practice using the Microsoft ® product(s) and tools that are used in this course. ! Practice presenting each module and demonstration. ! Review the Classroom Setup Guide. ! Practice each lab. Anticipate the questions that students may have. ! Identify the key points for each topic, demonstration, and lab. ! Identify how each demonstration and lab supports the module topics and reinforces the module objectives. ! Identify examples, analogies, demonstrations, and additional delivery strategies that will help to clarify module topics for students. ! Identify the information that students need to complete each lab successfully. ! Note any problems that you may encounter during a demonstration or lab and determine a course of action for resolving them in the classroom. ! Identify additional preparation that is required to ensure the success of each demonstration and lab. ! Identify ways to customize a demonstration or lab to Decision Analysis and Risk Management: Two Sides of the Same Coin 1-800-COURSES www.globalknowledge.com Expert Reference Series of White Papers Introduction Every decision involves an analysis of possible future events (costs, outcomes, markets, etc.) and selection of a choice among competing alternatives. Making a decision is making a selection. Decision analysis is the process of dismantling a decision so as to determine the inputs and processes that went into arriving at a decision. Risk management is managing (preparing for) future uncertainties. Uncertainties are risks. They are the unknowns associated with future events . The decisions we make today create the risks that we must manage tomorrow. Risk management and decision analysis are effectively the same thing. They both involve the dismantling of choices so as to understand the uncertainty of outcomes associated with particular options that have been, or could be, made. It follows that high quality decision making serves the purpose of risk management. If our decisions include a thorough consideration of uncertainties , then future risks are simplified or minimized. But what is a high quality decision? How do we judge decision quality? This white paper provides an outline of how to judge the quality of decisions by analyzing how effectively the risks associated with various options have been analyzed. We begin with a definition for quality control in decision making. This definition is then related to the four steps of the decision making process and finally to the three types of error (risk) that occur in each of the four steps. The paper concludes with an example of how methodical decision analysis leads to an understanding of the degree of risk in a decision. Defining Quality Every decision is a balance between what we believe to be true and what we are forced to predict. Every deci- sion involves the analysis of available information and ultimately the selection of a choice among alternatives with varying degrees of uncertainty. Brian Denis Egan, Global Knowledge Instructor, MBA, PMP Decision Analysis and Risk Management: Two Sides of the Same Coin Copyright ©2005 Global Knowledge Network, Inc. All rights reserved. Page 2 I t follows that the better our information and the more balanced and thorough the analysis, the higher can be the quality of our decisions. Better decisions are informed, reasoned, and balanced. Making better decisions means living with less risk. Poor decisions are risky. They are made without a full understanding of what might go wrong. It is not that if you make a poor decision you are necessarily going to be proven wrong (e.g. make a bad investment or pur- chase a defect-prone vehicle), but that the decision was made without a full understanding of the uncertain- ties or risks involved. With poor decisions, risks are understated and returns exaggerated. High quality decisions imply a complete understanding of the uncertainties involved. Making high quality decisions involves recognizing what risks you are taking. It is about making informed decisions. Risks are the residual uncertainties left behind when decisions are made without perfect information. But of course we never have perfect information. We Amgraf, Inc. PDF Conference 2005 Page 1 of 10 PDF Forms and Database Connectivity Solutions By Franklin J. Garner, III President and CEO Amgraf, Inc. September 26, 2005 Introduction Every company and organization uses business forms, and now most have PC’s with access to the Internet. With great software like Amgraf OneForm Designer Plus (OFDP) and Adobe Acrobat, paper forms can be converted to Internet forms (I-forms) thereby saving significant costs in printing and storage. With additional effort, I-forms can be extended into fillable, submittable containers for data capture, retrieval, presentation, and processing. The benefits of database-connected I-forms solutions include improvements in productivity, transaction accuracy, and user satisfaction. So where’s the problem? Forms layout and design, and even the steps to insert fill fields, are usually graphic designer tasks. A non-connected PDF form is a self-contained file with everything packaged within the visual image. To make an I-form submittable, the originator must go beyond the form image and interact with software for field data extraction, data communication with acknowledgement, and navigational methods to start and end the form filling session. These functions have traditionally been performed by computer programmers, and are worrisome tasks for graphic designers. Adding database connectivity also introduces another layer of complexity onto I-forms. This white paper is intended to clarify the technical issues involved in implementing an I-forms data collection and retrieval system. Basic Internet Forms Functionality Internet forms can be used for many online transaction functions. The starting point is where the image of a form is converted so that it can be displayed on a computer screen and output to a local printer. Most Acrobat Distiller users have mastered this conversion step, and many web sites now have links to PDF forms for user access. Upon clicking a link, the free Adobe Reader opens within the browser window and a PDF form is displayed. The form can then be locally saved and/or printed. Amgraf, Inc. PDF Conference 2005 Page 2 of 10 With the Amgraf OFDP and Adobe Acrobat software, the form owner or originator can add many other functions to make PDF forms: • fillable • pre-populated • submittable • dynamic database views • field flattened Fillable forms have fill-fields overlaid on the form background so that field information can be keyed. Fields can be coded so that input validation occurs immediately, helping to reduce errors. With a little extra effort, fields can be programmed so that standard answers are chosen from drop-down lists, numerical amounts are immediately calculated, and other input values are automatically tested for correctness. Pre-populated forms open at the client PC with many fields already filled in. Field data can be transmitted along with the PDF file as Forms Data Format (FDF) instructions, or merged with the PDF form before it is served to the client. By pre-populating fields, the client is relieved of the burden of re-keying information already on file, and assured that the central system knows who is on the other end of the transaction. Submittable forms move field data in the other direction, from the client to the server. When a form is filled out, the information can be transmitted to the server so that it can be saved and/or processed immediately, without the need to rekey or scan in keystrokes from a paper document image. The benefit is that the costs associated with handling forms can be greatly reduced. Dynamic ... may find the same food to be bland and unappetizing Link to Learning 6/9 Taste and Smell View this animation that shows how the sense of taste works Smell and Taste in the Brain Olfactory neurons... pressure and temperature The large circumvallate papillae contain up to 100 taste buds and form a V near the posterior margin of the tongue 4/9 Taste and Smell (a) Foliate, circumvallate, and fungiform... that both taste and smell rely on chemical receptors being stimulated by certain molecules The primary organ of taste is the taste bud A taste bud is a cluster of gustatory receptors (taste cells)

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